Source: This post originated from my journal entry on March 15, 2026.
Every day I am learning something new. Today I realized that options trading is all about managing the Greeks and not the position, because the Greeks are everything there.
And not just the delta—I mean, all of the Greeks. People usually focus on delta hedging because it makes their position P&L look manageable, but in reality, it’s all the Greeks that come into play.
So yeah, hedging is key to managing the option position, and a 20 delta short put is the way to go. In the long run, it’s the only way to make money while keeping the delta maintained, with risk hedged.
First of all, a 20 delta put will always be risk-defined, 1:4, 1:5, like that. Then, after that, add some 5 delta or 4 delta hedges of equal lots, and then just wait and watch. Manage those Greeks every day, and remember to sell for the far expiries, like December ones. They are much safer and manageable.
And when the position needs to be managed, ask ChatGPT what to do.